Tesla, Inc. (NASDAQ:TSLA) Shayne ‘Jack’ Heffernan Price Target $150

Tesla Inc. shares on Thursday traded at their lowest in five sessions after a report said the Silicon Valley car maker and Panasonic Corp. have put on hold plans to expand the Nevada Gigafactory.

Tesla TSLA, -2.77% shares fell nearly 3% in midday trading, bringing weekly losses to more than 2%. Tesla stock has lost 11% in the past 12 months, versus gains of more than 9% for the S&P 500 index SPX, +0.00% in the same period.

Demand for battery cells continues to outstrip supply, Tesla said.

The stock is down for three out of the past five sessions, having dropped more than 8% a week ago after Wall Street reacted to Tesla’s lower-than-expected first-quarter deliveries.

The two companies made their decisions due to concerns about weakening demand for Tesla vehicles, the Nikkei reported. A Tesla spokesperson told Nikkei Tesla “of course” would continue to make new investments in the Nevada factory as needed.

“Both Tesla and Panasonic continue to invest substantial funds into Gigafactory,” a Tesla spokesperson told MarketWatch. “That said, we believe there is far more output to be gained from improving existing production equipment than was previously estimated. We are seeing significant gains from upgrading existing lines to increase output, which allows Tesla and Panasonic to achieve the same output with less spent on new equipment purchases.”

Contrary to what the report implied, “demand for cells continues to outpace supply” and it remains “the fundamental constraint” on the production of Tesla vehicles and stationary energy-storage devices such the Tesla Powerwall and the Powerpack, the spokesperson said.

According to the report, the Japanese electronics company would also suspend plans to invest in Tesla’s future plant in China. Panasonic and Tesla have invested $4.5 billion in the plant so far, Nikkei said, adding Panasonic was considering an additional $900 million to $1.35 billion investment into the plant.

Panasonic and Toyota Motor Corp. 7203, +0.71% in January announced a joint venture to produce automotive batteries. The venture is planned for late next year and is expected to involve plants in Japan and in China.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 291.27.

The projected lower bound is: 243.95.

The projected closing price is: 267.61.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 6 falling windows in the last 50 candles–this makes the current falling window even more bearish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 41.8491. This is not an overbought or oversold reading. The last signal was a sell 5 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 42.99. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 147 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -69. This is not a topping or bottoming area. The last signal was a sell 5 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 0 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -7.640 at 268.420. Volume was 16% above average (neutral) and Bollinger Bands were 46% narrower than normal.

Open High Low Close Volume___
268.300 270.500 265.600 268.420 9,835,927

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

TESLA INC gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
TESLA INC is currently 13.8% below its 200-period moving average and is in an downward trend. Volatility is Our volume indicators reflect volume flowing into and out of TSLA.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on TSLA.O and have had this outlook for the last 0 periods.